Gift Nifty Hints at Green Open on Wednesday as Chip-Led Optimism Lifts Asian Sentiment, Inflation Data in Focus

Mumbai, Sept 9: Indian markets are likely to open higher on Wednesday following optimism led by chip stocks across Asian exchanges, helping the regional risk sentiment shift away from Iran-speak and Fed-rate hike chatter. Asian markets were mostly higher in the morning, helped by a continuation of buying in semiconductor stocks particularly in Japan and Korea after recent strong gains this week.  

Reasons for Chip-Stock Euphoria  

This week’s broad strength in chip stocks was triggered by renewed AI infrastructure buying enthusiasm. Japanese tech and equipment stocks such as Tokyo Electron, Advantest gained overnight after lifting on optimism around next-gen AI compute demand. South Korean semiconductor giants SK Hynix and Samsung Electronics have rallied sharply this week as well, rising sharply amid fresh optimism around memory-chip pricing power as surging AI server demand prompts forecast-beating quarterly updates. The broader Nikkei benefitted repeatedly from sharp AI server/demand-driven chip-stock strength this week even as most sectors trade defensively amid broader macro/oil/rate/geopolitical concerns.  

However, investors are still watching closely for US inflation print later this week that could offer clues as to whether the Fed will raise rates at its Sept meeting or not. Odds of a hike shifted higher following last week’s stronger-than-expected US jobs report, so a hotter-than-expected inflation print could quickly turn risk sentiment sour once again and undo chip-led Asian optimism.  

Indian Markets See Gift Nifty Trade Higher  

Factoring in a firmer regional mood as well as a mildly higher Gift Nifty print, markets in India are likely to open higher on Wednesday and extend what has so far been a tentative stabilization following three straight sessions of declines even as crude prices and the Iran-US crisis simmers in the background. Gifts received by Indian citizens.  

Gift Nifty Snapshots  

Gift Nifty futures for September 29expiry rose 12.00 points or 0.05% to 23,650.00 at 08: 23AM IST on Wednesday, September 09.Asian markets continue to tentatively higher in the morning as techs tick higher.  

Asian Markets Mixed on Wednesday Morning  

Japan’s Nikkei225 was down 1.70% to 65,269.33, Pakistan’s KSE 100 shed 0.97% and Australia’s All Ordinaries dropped 0.94%. Indonesia’s Jakarta Composite Index rose 1.01%, Vietnam’s HNX 30 ticked 0.98% higher and mainland China’s Shanghai Composite edged up 0.20%. Hong Kong’s Hang Seng declined 0.38%.  

Wall Street Ended Sharply Lower Tuesday  

The Dow Jones Industrial Average closed down 628.18 points or 1.18% at 52,786.07, the S&500 slipped 0.58% and the Nasdaq declined 0.32%. US markets saw heightened risk-off trading amid souring mood over Iranian tensions as oil prices continued to climb.  

Oil Prices  

WTI Crude was up 1.45% at $94.38 a barrel and Brent Crude rose 1.51% to $99.40 a barrel. Murban Crude climbed 3.75% to $110.77 a barrel while OPEC Basket price spiked 8.76% higher to $106.26 as Iran-US tensions rose again with US attacks on Iranian oil tankers overnight in the Gulf of Oman and Iran responding with a ballistic missile attack on US forces base in Jordan overnight. Brent crude futures rose sharply after Iran fired ballistic missiles toward a US military base in Jordan in response to the US attack on Iranian tankers overnight. Brent rose further after oil tanker firms reportedly warned ships to avoid areas near Saudi Arabia and the United Arab Emirates as tensions escalated further between Iran and the US.  

Iran Ratchets Up Tension with US Again  

Tensions between Iran and the US spiked higher Tuesday after Iran-backed Houthi rebels in Yemen launched rockets at four cities in Saudi Arabia, wounding 73 people across three provinces. Iran then fired ballistic missiles toward a US military base in Jordan in response to the US attack on five Iranian oil tankers in the Gulf of Oman early Tuesday morning. US defense officials said Iran had fired at least five ballistic missiles at an empty aircraft hangar at the Prince Hassan air base in southern Jordan but the facility’s air defenses intercepted 18 of the 20 missiles fired. Iran warned Kuwait and Bahrain it could target oil tankers at ports in their countries overnight, raising concerns over maritime shipping disruptions should Iran or the Houthis target oil tankers or key shipping lanes in the Persian Gulf or Arabian Sea.  

Tuesday Wrap: Sensex, Nifty  

The Sensex snapped a three-day winning streak Tuesday, falling 555.23 points or 0.73% to close at 75,577.58 while the Nifty 50 lost 144.05 points or 0.61% to end at 23,635.10, its second straight session closing at a six-week low. The Nifty Private Bank index was the biggest loser among sectoral indices, declining 1%. ICICI Bank, Axis Bank and SBI Life Insurance were among the top Nifty losers. The Nifty Oil & Gas index slipped 0.67% and the IT index declined 0.37% as investors remained wary of high crude prices as India imports the majority of its oil needs. Media, Pharma and FMCG stocks provided some counterbalance to the losses.  

Source

•  nseindia.com